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Kuala Lumpur - Malaysia will discontinue its Formula 1 Grand Prix race after 2018 due to falling revenues, a government minister said on Monday, waving the checkered flag on one of Asia's longest-running F1 races.

The economic problems besetting the sport are taking too much of a toll and Malaysia will not renew after its current contract expires in two years, Tourism and Culture Minister Nazri Aziz told local media.

The race's future had been up in the air after officials said last month they were reassessing their commitment to the event amid ebbing television viewership and anaemic ticket sales.

Huge losses

Nazri told state-run Bernama news agency: "We spend 300 million ringgit ($67-million) per year but are not getting 300-million back. There are no returns on the F1 Grand Prix."

He noted that attendance had declined despite the high cost of staging the race, which has been held at the Sepang circuit near Kuala Lumpur since 1999.

The race has faced intensifying competition, particularly from the glittering night grand prix in neighbouring Singapore, just as energy-exporting Malaysia has seen its government revenues sapped by weak world oil prices and slowing economic growth.

F1 races are often run at a loss but they are attractive to many cities because of their prestige and exposure to global audiences.

Dwindling returns

Malaysian officials have said Sepang, which can accommodate 120,000 fans, drew just 45,000 to last month's grand prix, and added that race-day TV ratings were also poor.

In comments on Twitter last month, Sports Minister Khairy Jamaluddin stressed the competition from other events outside of Malaysia.